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Your firm has the following metrics: Sales: $54.5 million Net Income: $7.8 million Assets: $45 million Book Equity: $19 million Your firm's industry has the

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Your firm has the following metrics: Sales: $54.5 million Net Income: $7.8 million Assets: $45 million Book Equity: $19 million Your firm's industry has the following averages: Profit Margin: 9% Asset Turnover: 1.25 Equity Multiplier 1.50 Which of the following statements is true O Your firm's ROA is greater than its competitors, but the ROE is lower Your firm can increase its profit margin by restructuring debt levels to match with its competitors The ROA and the ROE for you firm are both lower than its competitors Your firm's ROE is lower only because it has less leverage than its competitors

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